Optimal equity capital requirements for large Swiss banks

Artikel

Ten years after the worst financial crisis of the post-war period, Switzerland has established a Too-Big-To-Fail (TBTF) framework. Under this framework, the two large Swiss banks are subject to substantial capital requirements. It is not obvious whether the TBTF capital requirements are sufficient to prevent banks from plunging the country into a financial crisis once again. We estimate the social costs and benefits of higher capital requirements for the two large Swiss banks and derive socially optimal capital ratios from the cost-benefit trade-off. Our results show that Swiss TBTF capital requirements still fall short of socially optimal capital ratios.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Swiss Journal of Economics and Statistics ; ISSN: 2235-6282 ; Volume: 154 ; Year: 2018 ; Issue: 1 ; Pages: 1-21 ; Heidelberg: Springer

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financial Institutions and Services: Government Policy and Regulation ; Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data) ; Investment; Capital; Intangible Capital; Capacity
• Thema: Financial regulation ; Bank equity capital requirements ; Capital structure ; Elasticity of substitution ; Translog production function

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Junge, Georg ; Kugler, Peter
• Ereignis: Veröffentlichung
• (wer): Springer
• (wo): Heidelberg
• (wann): 2018

Weitere Informationen

• DOI: doi:10.1186/s41937-018-0025-z
• Handle: http://hdl.handle.net/10419/259704
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ